Hayes believes that Bitcoin could potentially experience a bull run resurgence due to new economic shifts in the United States. He points to Treasury Secretary Janet Yellen as a key figure to watch, as the upcoming release of refunding documentation could lead to increased liquidity in the economy. Hayes highlights the importance of two liquidity sources within this documentation: the Reverse Purchase Agreement (RRPS) and the Treasury General Account (TGA). He predicts a potential $1.4 trillion liquidity injection stemming from a $1 trillion TGA drain and $400 million RRPs, which could lead to a rally in stocks and a re-acceleration of the crypto bull market.
Bitcoin ETFs have seen a recent slowdown in inflows despite their mainstream entry, with BlackRock’s iShares Bitcoin Trust (IBIT) experiencing a decrease in daily inflows after a 71-day streak. Bloomberg ETF analyst Eric Balchunas sees this as a natural progression and believes that the slowdown was overdue. Despite this slowdown, IBIT remains the second-largest Bitcoin product by assets under management, trailing only the Grayscale Bitcoin Trust (GBTC). Balchunas points out that out of all the registered funds in the USA, IBIT currently ranks 2nd in year-to-date flows.
Hayes also emphasizes the importance of Yellen’s position within his theory, suggesting that an increase in US dollar printing leading up to and beyond the upcoming Presidential election could impact Bitcoin’s price. He believes that if any of the three potential scenarios he outlined were to happen, there could be a rally in stocks and a re-acceleration of the crypto bull market. Hayes urges investors to pay attention to Yellen’s actions, as he believes that the Federal Reserve is irrelevant in comparison.
The success of Bitcoin ETFs has sparked positive momentum for the cryptocurrency’s price, with the most successful ETF debut in history. Despite the recent slowdown in inflows for IBIT, ARK Invest CEO Cathie Wood anticipates further gains in this new trend. Wood predicts that Bitcoin could surpass the $1 million mark in the future, indicating her confidence in the long-term potential growth of Bitcoin ETFs. The overall growth and mainstream acceptance of Bitcoin ETFs have contributed to a positive outlook for the cryptocurrency market.
Balchunas points out that despite the recent slowdown, IBIT remains one of the top-ranking funds in terms of year-to-date flows among all registered funds in the US. This indicates that there is still significant investor interest in Bitcoin ETFs, despite the temporary decrease in inflows. The success of IBIT and other Bitcoin ETFs has demonstrated the growing acceptance and integration of cryptocurrencies into mainstream investment portfolios, paving the way for further growth and innovation in the cryptocurrency market.
In conclusion, the recent economic shifts in the United States, as well as the success of Bitcoin ETFs, have contributed to positive momentum for Bitcoin and the overall crypto market. Hayes believes that Yellen’s actions could play a crucial role in impacting Bitcoin’s price, and he predicts a potential rally in stocks and a re-acceleration of the crypto bull market based on upcoming liquidity injections. Despite a recent slowdown in inflows, the long-term outlook for Bitcoin ETFs remains positive, with industry experts like Cathie Wood predicting further gains and the potential for Bitcoin to surpass significant price milestones in the future.
